Page:United States Statutes at Large Volume 110 Part 5.djvu/373

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PUBLIC LAW 104-290—OCT. 11, 1996 110 STAT. 3447 SEC. 508. CHURCH EMPLOYEE PENSION PLANS. (a) AMENDMENT TO THE INVESTMENT COMPANY ACT OF 1940. — Section 3(c) of the Investment Company Act of 1940 (15 U.S.C. 80a-3(c)) is amended by adding at the end the following new paragraph: "(14) Any church plan described in section 414(e) of the Internal Revenue Code of 1986, if, under any such plan, no part of the assets may be used for, or diverted to, purposes other than the exclusive benefit of plan participants or beneficiaries, or any company or account that is— "(A) established by a person that is eligible to establish and maintain such a plan under section 414(e) of the Internal Revenue Code of 1986; and "(B) substantially all of the activities of which consist of— "(i) managing or holding assets contributed to such church plans or other assets which are permitted to be commingled with the assets of church pleins under the Internal Revenue Code of 1986; or "(ii) administering or providing benefits pursuant to church plans.". (b) AMENDMENT TO THE SECURITIES ACT OF 1933. —Section 3(a) of the Securities Act of 1933 (15 U.S.C. 77c(a)) is amended by adding at the end the following new paragraph: "(13) Any security issued by or any interest or participation in any church plan, company or account that is excluded from the definition of an investment company under section 3(c)(14) of the Investment Company Act of 1940.". (c) AMENDMENTS TO THE SECURITIES EXCHANGE ACT OF 1934. — (1) EXEMPTED SECURITIES.— Section 3(a)(12)(A) of the Securities Exchange Act of 1934 (15 U.S.C. 78c(a)(12)(A)) is amended— (A) in clause (v), by striking "and" at the end; (B) by redesignating clause (vi) as clause (vii); and (C) by inserting after clause (v) the following new clause: "(vi) solely for purposes of sections 12, 13, 14, and 16 of this title, any security issued by or any interest or participation in any church plan, company, or account that is excluded from the definition of an investment company under section 3(c)(14) of the Investment Company Act of 1940; and". (2) EXEMPTION FROM BROKER-DEALER PROVISIONS. —Section 3 of the Securities Exchange Act of 1934 (15 U.S.C. 78c) is amended by adding at the end the following new subsection: "(g) CHURCH PLANS.— NO church plan described in section 414(e) of the Internal Revenue Code of 1986, no person or entity eligible to establish and maintain such a plan under the Internal Revenue Code of 1986, no company or account that is excluded from the definition of an investment company under section 3(c)(14) of the Investment Company Act of 1940, and no trustee, director, officer or employee of or volunteer for such plan, compsmy, account person, or entity, acting within the scope of that person's employ- ment or activities with respect to such plan, shall be deemed to be a 'broker', 'dealer', 'municipal securities broker', 'municipal securities dealer', 'government securities broker', 'government securities